SVB Financial files for bankruptcy protection after swift implosion

(Reuters) – SVB Financial Group on Friday sought protection under Chapter 11 of the U.S. bankruptcy code, days after its former unit Silicon Valley Bank was taken over by U.S. regulators.

Bank stocks globally have seen billions of dollars wiped away from their market valuation in the aftermath of the collapse, which also shook the startup community the Santa Clara, California-based bank was mainly lending to.

Below is a timeline of key events leading up to the Chapter 11 filing:

Date Development

March 8, 2023 SVB says it intends to raise $2.25 billion in

common equity and preferred convertible stock

after it sold a portfolio of US Treasuries and

mortgage-backed securities at a $1.8 billion


March 9, 2023 SVB clients pull their money from the bank on

the advice of venture capital firms such as

Peter Thiel’s Founders Fund, sources tell

Reuters, leading to $42 billion of deposit

withdrawals on that day

March 10, 2023 A California regulator shuts Silicon Valley

Bank and appoints the Federal Deposit

Insurance Corporation (FDIC) as receiver to

take control of its parent company, according

to the agency’s statement

March 11, 2023 Employees of Silicon Valley Bank offered 45

days of employment at 1.5 times their salary

by the regulator FDIC, according to an email

to staff seen by Reuters

March 12, 2023 “Depositors will have access to all of their

money starting Monday, March 13,” the U.S.

Treasury, Federal Reserve and FDIC say in a

statement, adding that no losses associated

with the resolution of Silicon Valley Bank

will be borne by the taxpayer

March 13, 2023 The defunct holding company says it is

planning to explore strategic alternatives for

its businesses and names William Kosturos as

its chief restructuring officer.

President Joe Biden vows to take action to

ensure the safety of the U.S. banking system.

March 14, 2023 SVB says that Goldman Sachs acquired the bond

portfolio on which it booked a $1.8 billion

loss, a transaction that set its failure in


Canada’s financial regulator

March 15, 2023 says

it has taken permanent control of

the assets of Silicon Valley Bank’s Canadian

branch and was winding up the institution.

Regulators at the U.S. Federal

March 15, 2023 Deposit Insurance Corp (FDIC) have asked banks

interested in acquiring failed lenders Silicon

Valley Bank and Signature Bank to submit bids

by March 17, Reuters



U.S. Treasury Secretary Janet

March 16, 2023 Yellen


that Silicon Valley Bank had to

be closed because of a liquidity risk that

meant the bank could not meet depositors’

withdrawal requests.


March 17, 2023 says

it filed for a court-supervised

reorganization under Chapter 11 bankruptcy

protection to seek buyers for its assets, days

after its former unit Silicon Valley Bank was

taken over by U.S. regulators.

(Reporting by Mehnaz Yasmin and Priyamvada C in Bengaluru; Editing by Maju Samuel and Saumyadeb Chakrabarty)